Italian bank Intesa Sanpaolo is contemplating acquisition of an international private bank which is similar or lower in market value than its own private banking division.
As told to Bloomberg Television, Intesa CEO Carlo Messina said the bank aims to retain control through the deal.
"I want have the control of this entity after the acquisition so my target is in the range of my private banking division value."
Its private banking division is worth €10bn ($11.4bn) to €15bn based on price-earnings or price-to-book value.
The bank is planning to expand its asset management, private bank and insurance businesses to cushion the effect of low interest rates that has been adversely affecting income on lending and deposits.
As part of its four-year plan targeting total cash dividends of €10bn, the bank is planning to cut costs, merge units and dispose assets.
Meanwhile, the bank that is considered to be Italy’s second largest by assets, also announced that its profits had doubled in the first quarter with net incomes increasing from €503m to €1.06bn.
Intesa received stronger numbers this year riding on investors’ faith in Italy’s potential for growth after three years of recession that led to a weakening of the banking system due to an increase in the stock of non-performing loans, reported the Financial Times.
Established in 2007 from a merger between Banca Intesa and Sanpaolo, Intensa is slowly growing its international presence.
Image: THe profits of Intesa Sanpaolo doubled in the first quarter to €1.06bn. Photo: courtesy of Stuart Miles/freedigitalphotos.net.